Is Scorpio Tankers, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Scorpio Tankers, Inc. has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current metrics, with a P/E ratio of 7, an EV to EBITDA of 6.38, and a Price to Book Value of 1.59, which are not competitive compared to peers like Frontline Plc, which has a P/E of 21.44, and International Seaways, Inc., with a P/E of 9.81.
Despite a strong dividend yield of 141.78% and a solid ROE of 23.34%, these figures do not compensate for the high valuation grade. The stock has shown mixed performance relative to the S&P 500, with a notable 5-year return of 364.44% compared to the S&P 500's 96.61%, but a disappointing 1-year return of -14.07% against the index's 17.14%. This suggests that while past performance has been strong, current valuations may not be justified.